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SK Teams up with Orix to Acquire Toshiba

June 02, 2017 14:26|June 02, 2017 14:26
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SK Hynix clasped hands with Japan's financial service company Orix to take over Toshiba's memory chip business. This move is interpreted as SK Hynix's effort to ease the negative public sentiment in Japan over a foreign company's acquisition of Toshiba's semiconductor unit.


According to industry sources on June 1, SK Hynix formed an alliance with Japan's Orix following an earlier tie-up with the American private equity firm Bain Capital.


Orix would not only extend financial support but also serve as a stepping stone for SK Hynix to forge tie-ups with Japan's public-private investment fund Innovation Network Corporation of Japan (INCJ) and Western Digital which is now urging that it be given exclusive negotiating rights.


Orix, which started as a lease company in 1964, has grown into one of Japan's largest financial service companies with a variety of subsidiaries in the areas of venture capital, life insurance, and real estate development. As of the end of 2016, ORIX has assets of 9 trillion yen ($8.1 billion).